In order to have the icons working on Android Wear devices it’s required to apply KAIP with CyanogenMod Theme Engine. This will allow the icons to show only on the notificatios for some apps only.
Not every themed icon made can be seen on wear devices, it depends on the app, so keep that in mind.

Permissions explained:

• Why does the app need permission to modify or delete content of my storage?
It’s needed to be able to write and read icon requests data and files.

• Why does the app need permission to full network access?
It’s needed to be able to load the cloud based wallpapers and download them.